Giordano'S Mainland Sales Fell By 12% Over The Same Period Last Year.

Closing many stores, but the performance recovery is still slow.

Recently,

The three quarterly report showed that the company's three quarter sales fell 3.4% compared with the same period last year.

Among them, sales in mainland China fell by 12% over the same period last year.

It is understood that the total number of Giordano stores in the world is 2359, 120 more than 2479 in the same period last year.

The mainland of China has 1003 stores in the three quarter of last year, and the number has now been reduced to 913.

Among them, the number of self operated stores has been reduced from 486 to 398, and the number of franchised stores has decreased from 517 to 515.

Giordano said that the performance of the stores that had been turned off was poor. In the future, the group will take the development of the franchise network as its main strategic target. By the end of 2016, the group will resume its normal development after properly handling the poor performance of the store portfolio.

However, sales volume in mainland China is still down after large-scale closure.

Giordano admits that the future market is still full of challenges due to the slowdown in the mainland's economic growth.

Last year, visited by the mainland.

With the change of passenger consumption pattern and the slowing down of local retail consumption, Giordano's net profit dropped by 38%, and sales in three regions of Greater China, Singapore and Southeast Asia decreased significantly. The performance in the Greater China region was the most obvious, with sales of HK $1 billion 580 million, down 9% from HK $1 billion 727 million in 2013.

This led Giordano to shut down 190 stores in one breath last year.

This year, by reducing the number of stores and product pformation, Giordano's performance improved slightly compared with last year's crash. However, the Group expects product demand to remain unstable in 2015.

Giordano said the performance of Chinese franchisees has changed after closing a large number of stores last year, but there is still a lack of confidence in opening new stores, and the loss shops are still eroding profitability.

In March of this year, Giordano launched a new brand priced at 29-99 yuan.

The industry believes that the bottom line of pricing will create greater pressure on the already declining profits.